Investing in the United Arab Emirates’ property market is attractive for so many reasons, and after a healthy post-pandemic bounce back, the opportunity for serious returns is stronger than ever.
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In addition to the nation’s admirable and forward-thinking management of the pandemic, there are many more reasons for foreigners and nationals to take the decision to secure a mortgage.
Foreigners will respond well to the UAE’s strong economy, stable currency, and investor-friendly policies that have been introduced in recent times. These are boosting the confidence of foreign investors looking to hold a property for the long term.
There’s a split between the trends being observed: some are market influenced, while others are market influencers. Read on to find out more.
There’s Never Been A Better Time
While other property markets plunged and plateaued, the value of property deals made in Dubai in 2021 more than doubled in value, and a 12-year record for the value of sales was broken.
According to a real estate report published by Berkshire Hathaway, the UAE’s real estate market will grow even more quickly over the coming year.
An Increase In End-Users
Expo 2020 certainly boosted the number of visitors to the UAE, and in the post-pandemic recovery, the property market has seen an increase in the number of end-users. The majority of investors were looking to take advantage of the all-time low mortgages that were being made available.
Rental returns continue to be strong as the market makes a robust comeback, and will continue to climb as the region returns to normality.
Lapping Up Luxury Homes
The UAE is known for its spacious villas and elevated interpretations of European apartments. People across the globe became more conscious of the importance of space and storage during the pandemic, and the reminder lingers today.
The numbers speak for themselves: in 2021, prices rose by 16.5 percent year on year, with a record of more than 54 villas valued at more than US$10 million each being sold by September 2021.
Dubai alone had luxury home sales hitting their highest since 2015. More than 90 homes were sold at more than AUD$1o million (DHS36.7 million) in 2021, as the world’s elite noticed the UAE was the perfect place to recover from the pandemic.
Once the luxury of the UAE has been experienced, it’s difficult to adapt to lesser comfort in another country. The desire to buy and hold property in the UAE, rather than take advantage of the many short-term rental opportunities, remains a significant trend.
Environmental Responsibility
The UAE has made a bold commitment to achieving net-zero by 2050, and as a result, government branches, corporations, and individuals are becoming increasingly more aware of their responsibility toward achieving a sustainable future.
Sustainable development must be at the core of every design product. There are already murmurs of legislation on minimum acceptable green standards, new building codes, new sustainable building materials, and the use and disposal of construction waste being required in the near future.
